Free Money Finance

Should You Buy Pet Insurance?

Here's a piece from Money Central that discusses the issue of pet insurance and whether or not pet owners need it. The summary of their thoughts:

I still believe most people are better off forgoing the policies and instead putting the money they would spend on premiums into a savings account. Pet insurance can cost $2,000 to $6,000 over the life of an average pet, and the chances are slim you'd ever have to shell out that much for treatments.

But if you're the type of person who would do anything to save your pet, including spend thousands of dollars on medical treatments, pet insurance might be a preferable alternative to going into debt.

Having written a ton on the cost of pets, I can tell you for sure that there are a lot of people out there that would spend whatever necessary to save their pets. So why does something that can cost $2k to $6k still make sense even for these people. Here's why:

What's changed in recent years is the state of veterinary science, as well as the economics of running a veterinary practice. Vets today can offer treatments that were unheard of just a few years ago -- and at prices that could make you howl. Consider:

• Treatments once reserved for humans, from radiation therapy to kidney transplants, are currently available for pets. That means once-fatal conditions are now treatable at costs ranging from $1,000 to $5,000 or more.

• Vets have access to increasingly sophisticated and costly diagnostic tools such as MRIs. Such screenings not only boost the cost of exams but often detect problems that once would have gone unnoticed, and untreated.

• These expensive tools and procedures have helped create health-care inflation in the pet doctor world.

Oh yeah. Now the same issues that have driven up human medical care costs are impacting the costs of animal health care.

The piece goes on to detail the traps to watch out for when buying pet insurance as well as give some advice on when to buy and when not to. For further information on the subject, you can also see my post titled How to Choose the Right Pet Health Insurance.

I'm not sure I could justify spending $2,000 to save a pet, but for those of you who would spend this (and many who would spend a lot more!), pet insurance is certainly something you should investigate.

Free Money Finance Top 10 Most Hated Posts/Themes: #1 The Cost of Pets

Here's my most-hated theme of all time: the cost of pets.

As many of you know, I have a whole category devoted to the cost of pets. Some of the posts that make this category a loser in most people's minds are as follows:

• How Much Would You be Willing to Spend to Save Your Pet's Life?

• Calculating the True Cost of a Pet

• Comments: Sell Your House to Save Your Pet's Life

• Annual Pet Costs and A Money Saving Tip (Get a Cat)

• Annual Pet Costs and A Money Saving Tip (Get a Bird)

• Cost of Pets According to the SPCA

• Annual Costs of Pets

• Are Pets Really that Expensive?

• The True Cost of a Pet Dog

• Cost of a Dog = Cost of a Car

• You Choose -- Pets or College for the Kids

I think the reason that people don't like this topic is that most pet owners consider their pets part of the family (similar to a child) and to try and put a monetary value on the pet seems reprehensible to them. I can sympathize with this position a bit. Others try to argue that pets aren't really that expensive -- despite facts from pro-pet organizations like the SPCA. I think these people are simply in denial.

Of course it's your money and you can spend it on whatever you like. But here are a few thoughts you should consider as you think about this issue:

1. Pets are an expense. My best guess is that a medium-sized dog costs $1,000 per year on average. That's a good chunk of change you're committing to over 10-15 years when you pick up a puppy.

2. Considering the issue of the cost of pets isn't a slam on Rover and Fluffy -- it's simply a recognition that there are expenses that go along with them.

3. I've had pets all my life and I love them. So don't get mad at me when I bring up the issue -- I'm just the messenger. ;-)

Pet Cats Just Got More Expensive

Here's just another sign that the apocalypse is near -- a hypoallergenic cat:

A small California biotech company says it is ready to deliver a hypoallergenic cat.

At the start of next year, the first kittens — which the company calls “lifestyle pets” — will go home to eager owners who have been carefully screened and have been on a waiting list for more than two years.

Cost: $4,000.

You've got to be kidding, right?

Before this, pet cats cost just below $10,000 during their lives. Well, cat inflation is up to 40% with this recent introduction!!!!!!!

Cost of a Dog = Cost of a Car

Here's an interesting and entertaining piece I found on how to choose the right dog that contains the following thoughts on the cost of a dog:

Whoever said that two can live as cheaply as one never had a dog. A dog isn't going to break you financially, but it is an investment. Over the life of the pet, you can expect to shell out as much money as you would on a decent used car (or a crappy new one). But really, which would you rather have - a Yugo or unconditional love? Be honest.

This finding meshes with my thoughts that a dog will run $1,000 a year or so throughout his/her life. It's an issue that needs to be considered before you decide to buy a dog (or any pet for that matter.)

My boss just got a dog and since his kids know my kids, the pressure's now on us to do the same. Currently, though, I'm encouraging my son versus daughter battle (he wants a dog, she wants a cat) to stall for time. ;-)

The True Cost of a Pet Dog

I've written a lot on the cost of pets. In fact, I have a whole category devoted to pets here at Free Money Finance. It's an on-going debate on what the true cost of a pet is -- me pointing out how expensive it can be, others sharing their costly pet horror stories (mostly centered around expensive health care for the pet), and other's saying the true cost of a pet is much lower than the sources I quote.

Well, here's another article on the cost of owning a pet, this time from PetEducation.com. It's a reasonable and well-thought-out piece from some who (obviously) loves pets, but also wants to educate potential owners on how expensive they can be. The article gives low, medium, and high costs associated with owning a 50-pound  (mid-size) dog. It also breaks down the costs for year one, yearly costs after year one, and lifetime costs over a 14-year life span.

In summary, here are the total costs for a 50-pound dog throughout its 14-year lifetime:

• Low estimate: $4,242
• Medium estimate: $12,468
• High estimate: $38,905

They then qualifies these numbers, saying the costs could be much larger in reality:

And remember, this is the cost for a 50-pound dog that lives in the Midwest. It is not uncommon to see some of these numbers double or triple in places like New York, Los Angeles, Miami, and Dallas. Now granted most people do not end up spending $40,000 on their dog, but some spend a whole lot more. A dog with hip dysplasia or severe allergies can have significantly higher veterinary expenses and I routinely see people who spend over $2,000 on a single veterinary problem. Chances are your costs will be similar to those I incur, but even with the minimum required care, it is still over $13,000.

Yikes! If you live in an expensive city AND have an expensive pet, you could be talking the price of a college education for just one animal!

The piece ends with a sentiment that I share with the author:

Remember we own dogs because we love dogs. The money should not ever stop us from caring for or taking in a puppy that needs a home, but we have to be aware of the cost and our commitment to the animal. The animal's needs have to come first! This is so important I am going to say it again, The animal's needs have to come first! Lack of funds is no excuse for not providing adequate care for an animal. If we can not meet the needs of the animal or we are not fully committed to providing the time, energy, and finances that our dog needs then we should not bring that animal into our home, period, no excuses. It just is not fair to them.

This is exactly what I'm trying to do with my cost of pets posts -- show people what they are truly going to spend on their pet so they can make an intelligent decision about whether or not they are financially up for the task. Most people do not consider fully (if at all) the costs of owning a pet -- they tend to make more of an emotional decision when it comes to getting and selecting a pet -- and thus may be putting their finances at risk. Hopefully, the pet posts here at Free Money Finance will help people think about the financial commitment they're making and take it into account when they are deciding whether or not to get a pet.

Are Pets Really that Expensive?

For some reason, people seem to think I'm making up the costs associated with having pets. But I'm quoting sources like the SPCA, pet stores, and the like -- organizations that are pro-pet and have no interest in making owning a pet seem expensive. All I'm doing is quoting the experts in trying to set a guideline for people who are considering how much a pet will cost them.

But, somehow, most people seem to think they spend nowhere near the averages quoted by the experts. So either Free Money Finance readers simply have cheap pets or they aren't following their costs very closely.

There were several quotes on my recent post titled Annual Costs of Pets worth sharing with everyone. Here's the first -- who says that his cat is worth $10k:

My cat is definitely worth the 10 grand or so just for the enjoyment and stress relief that she adds to our life. Up to this point, I don't know if I am paying that much per year (other than her first year when she needed extra shots and to get spade), but I am sure that as she gets older she'll get more expensive. She's also just a little kitty; her best friend (my mother's cat) weighs more than twice what she does.

Then the "I don't pay anywhere near that much" comments started:

I still don't get it. I have a big dog and a small dog, and they cost nowhere near this amount, even though they get premium food ($30 per month) and regular vet checkups (about $300 total yearly).

That's about a dollar a day even if you factor in the one-time cost of a leather collar ($16 each).

No "gifts?" No treats? No medicines? (fleas and ticks) No bedding? No kennel/sitting costs? And on and on. You can see where it could add up.

The next commenter had a similar experience:

I have 2 cats (large but not fat, 13 & 17 pounds each), and their annual cost is about $300 total. Annual vet visits $50 each, one large bag of cat food - $12/month, and litter - $6/month. I think where people over spend are the cat toys, or cat towers (they like cardboard boxes just as well), and other non-essential things. Like Blaine said above, there were extra costs when I first got them, but on going is nowhere near $640 per cat.

IIRC haven't there been studies that have shown people with pets are healthier and live longer? Would the savings in medical costs offset the cost of the pet?

That's a GREAT question!!!!! Anyone seen any scientific studies/evidence that shows owning a pet lowers medical costs? If so, you could almost look at owning a pet as medicine -- one that saved you a ton of money during the pet's life.

Next, someone who sees where the high costs could come from commented:

I think they're counting things like either:

A) obedience training, or
B) buying new shoes.

We've had to spend several hundred extra dollars this year to add to our home improvement projects to prevent our dog from doing things like destroying the garden or clawing holes in the screen of our porch.

Yep. No one ever thinks of those sorts of costs. Several hundred dollars, huh? Yikes!

Here's a comment from a person who says smaller isn't always cheaper:

Smaller isn't always cheaper, if you commit to taking care of your pet's medical needs. Ever take a bird to the vet for just a checkup and routine lab work? Yikes! There goes one-third to one-half of the annual bill for the cat! Guinea pigs, chinchillas, ferrets, and other exotics can run up the bills real fast, too. Furthermore, small pets need to be seen by a vet who specializes in exotics. Before buying an exotic, call around to see who the local specialists are, and ask them what the typical office visit will cost. You may decide to go rescue a kitty from the animal shelter after all!

Of course, I didn't intend to be a guinea pig owner until I found a baby guinea pig, frightened and all alone, on a country road and took him home. But now that I have him, and adopted another from a shelter as a companion for him, both of my piggie boys will get proper care.

Don't get me started on the costs of a python or a baby alligator!

Then finally, someone gets to the essence of what I'm trying to accomplish with these posts:

Even if the figures are somewhat off, I think it's really helpful for shelters to give out guidelines about how much an animal costs. A lot of people just assume that they can do it on the cheap and be lazy (ie buy the cheapest food, never change the aquarium water, keep the dog outside all the time) but this makes the animal sick and unhappy. If you balk at $600 a year for a cat, where else are you going to cut corners in its care? You are just as financially responsible for pets as you are for children, if not more so because the state or your relatives will take care of abandoned children, but abandoned dogs get put to sleep.

That's what I should have said at the beginning. ;-)

Finally, we end with another commenter who can see where the high costs of pets come from:

To [those] who don't understand these costs...if all you ever have to do for your pet is take them in for an annual exam, count yourself lucky. The costs quoted factor in:

shots and spay/neuter as a puppy; a lifetime worth of food, toys, obedience training, treats. AND the additional costs of medical for aging pets.

Heck, I rescued an abandoned puppy 9 years ago. She is just recovering from her FOURTH MAJOR SURGERY. Cost of each one? About $4000. Yet would you suggest I put her down because of a torn ligament or broken bone?

If you are not spending that projected cost for you pets (yet), save it away. As your pet ages, the costs will increase.

Yep, you read that right -- four surgeries at $4k each. In other words, $16k. That's a new car. See what I mean.

Annual Costs of Pets

Here's another article for my on-going collection of "how expensive are your pets" posts. This one comes from a Money Central article on 10 easy ways to save $500 or more. Their thoughts:

Pawprints and Purrs, an animal adoption agency based in Keithville, La., tells its clients to expect to pay these annual costs of pet ownership:

• Cat - $640
• Small dog - $780
• Medium dog - $1,115
• Large dog - $1,500

Obviously, smaller is cheaper. The difference between a large dog and a small one is $720 per year -– and that's a lot of kibble.

You're telling me!

Now, let's say each of these pets lives 15 years. Here's the lifetime costs:

• Cat - $9,600
• Small dog - $11,700
• Medium dog - $16,725
• Large dog - $22,500

For those of you with four pets or more, don't be complaining that you can't afford college for your kid!!!!

One more thought: these costs don't include the high-priced health care options many pet owners face at the end of their pet's life. Want some examples of these? See the following links:

• Your Pet's (Costly) Life

• Sell Your House to Save Your Pet's Life

• How Much Would You be Willing to Spend to Save Your Pet's Life?

Your Pet's (Costly) Life

Here's a recent comment I received to my post titled How Much Would You be Willing to Spend to Save Your Pet's Life?:

I am grappling with this very issue. My rescue dog and I have only been together for 6 months when he recently came down with a mysterious illness. The tests alone are running $1400 with a potential remedy of another $1500. I think I'm at my limit. Thanks for the comments from other animal lovers who love their pets but are understand there are limits.

It's a tough decision, isn't it? What would you do? Do you have any words of advice for this commenter?

Spending on Pets, An Incontinent Dog, Thoughts from Free Money Finance Readers

There was a virtual comment-o-rama going on after my post titled Pet Money Saving Tips. In the post, I said, "Based on the sources I've seen, my best guess on the average cost of a pet is somewhere between $1,000 and $2,000 per year." The first commenter kicked off the debate with this thought:

What are people buying for their pets that cost $1,000 or more a year? Even with buying Science Diet food, litter, two vet visits a year and misc. toys there's no way I spend close to $1,000 a year for my two cats. Lucky for me they're healthy, they stay inside and I'm not THAT pet crazy. I can see how dogs might be more expensive but 1-2K a year? Yikes!

Also, I can't skimp and give my cats cheap food anymore. One of them is allergic and science diet is way cheaper than frequent trips to the vet for steroid shots (and he couldn't have more than 3 per year and I can't stand seeing him miserable and scratching). But I buy the biggest bag and it's almost always on sale at one of the pet store chains.

For those who doubt that pets cost $1-$2k a year, check out the list of links at the end of Pet Money Saving Tips. The big costs are start-up (just getting a pet) and end-of-life costs (the last few years of a pet's life can be expensive). If you're looking at a 3-year-old dog, it's probably going to cost less in year 3. But in year 11, watch out!

The next commenter hit the nail on the head:

I think that your posts are right on and that a lot of pet-lovers are looking past the fact that you are just stating the obvious facts - pets are expensive! However, of course, if that is a worthwhile expense to them, then by all means they should get an animal. You are just pointing out to people who may not have thought the whole situation through that it indeed is costly.

This one got it right as well:

I understand your points, I think people should consider the costs of pets more BEFORE getting a pet. You have to be prepared to take care of them, my point is some of these costs seem quite inflated to me. Like anything else, you can be frugal with how you spend money on your pets, while still meeting and even exceeding their needs.

Next, I received a comment that I've never had before:

I have had a small dog now for 13 years. She has been incontinent all of her life. I have found the purchasing diapers (any brand, generic) and cutting a + at the base of where the diaper folds on the side with the decorative border on, and pulling out the pilling from the area around the + so that there is less mess from spillage of the filling and putting the diaper on with the border side on top makes a great fit. You may have to experiment with sizes, but once you've got it, you are on your way to a more fulfilling life with your pet. No more urine in your house and if you make the diapers up in advance, it's a quick change and off you can go without any worries. It is so much less stress on yourself and especially on your pet. You can both now live a long and happy life together.

Oh my. This was certainly new territory for me. And I decided to approach it with some humor. I responded:

Sounds like an outside dog to me. ;-)

The commenter wasn't amused:

I thought this was a web site about caring for your pets and still being economical. My bad! I am just glad that I am not your pet. Small dogs do not belong full time outside. Your bad!

Yikes! I said back:

How small is your dog? We have cats outside in our neighborhood all the time. Is your dog smaller than a cat?

She responded:

Where do you live in the Bahamas?, In Minnesota it gets pretty darn cold. I was only trying to give a bit of advice for people that have unwell pets and how to make theirs, and yours a little less stressful and save a few bucks on Petco or Petsmart expensive diapers. This banter is stupid, I meant what I said about my last comment regarding this web site. You obviously don't have a great love of animals or you would not be trying to egg me on.

Me? Egging someone on? No.

Three minutes later, she commented again:

P.S. I obviously chose the wrong avenue for my tip. Excuse me.

I couldn't let it die:

I live in Michigan. Not the warmest place in the world -- though warmer than where you live.

I'm not trying to egg you on. Yet I am surprised that there are dogs who wear diapers -- I've never heard of/seen one. We had dogs/cats for years (until we had kids and they were allergic) and never had a problem like this with any of them.

She responded with a lesson on dog incontinence:

There are a large amount of animals with incontinence problems. People either put the animal to sleep, or just let them make a mess, or as you say keep them outside.

This advice I give is from my heart for people who would choose to not put the pet to sleep if this was their only problem and they were not suffering from anything else. It is a quality of life issue. My dog is very healthy outside of the incontinence problem and I thought I found a reasonable solution to a sometimes very sad, and very expensive problem for a pet owner. Small dogs are usually the ones who have this problem.

I am a very responsible pet owner, and I was never able to have children. My pets are my life. I have 2 dogs, 2, cats, and 2 parakeets. Who all live the life of riley and make my husband and myself very happy and fulfills our life. We believe in keeping our pets safe, never running loose to get into trouble or possibly injured or killed. We exercise them and live indoors. My home is kept very clean, and never would you even know I had any pets.

Maybe more people who have this problem with their pets should come out of the closet. I really wanted to share my idea, as I know that those people, like myself, are out there and that this issue is rarely if ever discussed. I really want to get the message out because I saw doggie diapers on sale at one of the pet chains for $15.00 a dozen and I make my own for $13.00 @ 120 diapers.

Always remember that just because you never heard of it doesn't mean its not there. Just like people, animals have their own health and aging problems and we do love our pets in America don't we. I really want to get the word out on this to help the people that are faced with this very personal issue. You don't have to put your pet to sleep or have your house ruined. And you don't have to spend tons of money to resolve the problem.

My final word on the subject:

Interesting -- I would have never known.

How many diapers does your dog go through in a day? (in other words, how long do 120 diapers last?)

Also -- any idea how many dogs have incontinence problems? I'm sure it's a small percentage.

She didn't respond. I'm sure she was tired of dealing with me. That's ok. I had had my fill of dog incontinence talk for the day anyway.

The final comment to the post was a response to my tip to "beware pet insurance." It didn't say "don't get it," but was meant as a warning -- be sure you know what you're buying and get coverage from a reputable company. The last commenter had this to say:

Wow, I totally disagree with the comments on pet insurance and food. Pet insurance has saved me over $850 this year alone. And as far as food, well, feeding a dog cheap food can sure cause those medical bills to rise, not to mention reducing the quality of life of the pet. I'm not saying you have to buy the fanciest food out there, but paying close attention to the ingredients is important, and the stuff you get at the grocery is horrible if you look at the ingredients (by-products and wheat). Invariably, the good stuff is more expensive, but I find good deals out there by comparison shopping and making my local vendors compete with online wholesalers.

At the end of the day, you can seriously reduce your pet costs if you do everything, but how poor of a quality of life does your pet deserve? I'm not talking about splurging on toys or fancy treats, but pet insurance or medical costs, decent food, flea/tick treatment and preventative health alone will run a good amount. For those who aren't willing to put that kind of money in for the joys a pet brings, I suggest they look into one of those robot dogs. Maintenance runs a lot lower. :)

If you want more information on this topic, see How to Choose the Right Pet Health Insurance.

How to Choose the Right Pet Health Insurance

Well, it's been some time since I've bemoaned the cost of pets. I was getting sentimental for the topic (second only to my love for "how to save on gas" posts) when I saw this article and knew I had to share it with you. It's from MSNBC and offers their thoughts on how to choose the right pet health insurance as well as several other useful bits of information. Let's start with why the cost of pet medical care is so high:

“From 1994 to 2003, expenditures for veterinary services rose 76 percent,” says Carol McConnell, manager of veterinary education and services for Veterinary Pet Insurance, in Brea, Calif.

That rise may correlate with higher disposable incomes and the elevation of pets to "family member" status, along with longer animal life expectancies. But McConnell also notes that owners of ailing pets now have more options as veterinarians have added many diagnostic and treatment capabilities borrowed from human medicine.  Taking advantage of those new options can quickly run vet bills up into the thousands of dollars.

I've read article after article where a pet has had some sort of complex treatment/medical work done and it's cost the owner thousands of dollars. This is where the cost of a pet REALLY explodes -- in the last few years of a pet's life when costly medical procedures are often required.

Next, the piece gives an overview of pet insurance:

Because pets are technically a form of property, the insurance is structured more like a homeowner’s or auto policy.

“With a car, you have a fender bender and look to insurance to cover the repairs after meeting the deductible. As crude as it sounds, this is how pet insurance works," said McConnell. "The point of treatment remains getting the pet ‘back on the road,’ so to speak.” The main purpose of pet insurance, like auto insurance, is to manage the risk of a potentially costly event.

Is this post surreal for anyone besides me? What happened to the good old days when we simply said, "Yeah, old Buck just ain't what he used to be," and allowed our pets to age naturally? Now we have hip replacements and the like to make them live longer, "happier" lives. And, as such, we need things like pet insurance. Sheesh!!

Ok, I'm off that tangent now. Let's get on with the article from MSNBC.

It goes on to list the four major pet insurers (none of which I've ever heard of) and then gives these tips for evaluating a pet insurer as well as the pet insurance policy itself:

• Look at the underwriter behind the policy and verify its "Best Rating," which reflects its financial health and ability to pay any future claims. Compare coverage to actual and probable needs given the animal’s breed and its associated health risks.

• Understand the costs.

• Know what the coverage limits and more importantly what it excludes.

• Before buying, check with your company's human resources department. Many companies, including Home Depot, Procter & Gamble and numerous restaurant chains, offer pet insurance as an employee benefit.

What!!!!!!??????? Pet insurance as an employee benefit????!!!! I'm selling my Home Depot (HD) stock!! Bob Nardelli, what are you thinking????

As with any sort of product you buy, I recommend that you pay particular attention to the cost of pet insurance and what you get for that premium (points 2 and 3 above). That's really the heart of the issue. One other thing I'd add is that you want the insurance to cover you from big expenses (like a few thousand dollars), so having a high ($500 to $1,000) deductible may save you some money on premiums and still cover you for any really big pet medical bills you may face.

Cost of Pets According to the SPCA

I know that many of you probably think that I post on pet costs so frequently because I'm an animal hater. That's not true. I love animals and am, in fact, starting to crack to my son's request for a dog (I would have cracked by now, but he's allergic to them and we don't have room to keep a dog outside). I do post on this issue because I feel that most people don't factor in the financial demands of a pet when they get one. I figure that if I keep bringing up the topic, someone will listen and be helped.

But if you don't believe me (and you think I am an animal hater), this post is for you. Why? Because it deals with the cost of a pet from an organization who is 100% pro-pet, the SPCA. If anything, they have cause to estimate the cost of a pet as LOWER than what it actually is. So when you see numbers from them that show how costly pets are, you really have to believe them.

Here's a summary of the SPCA's cost estimate for pets:

Medium sized, mixed breed, spayed female dog:

• Yearly cost: $1071.00
• Additional one-time costs: $340.00
• Other: The above does not include emergency medical care, initial vaccinations, obedience classes, the cost of fencing, or bed.

Spayed female, domestic long haired cat:

• Yearly cost: $835.00
• Additional one-time costs: $282.00
• Other: The above does not include emergency medical care, initial vaccinations, the cost of an outdoor cat run or bed.

Domestic rabbit:

• Yearly cost: $449.00
• Additional one-time costs: $312.00
• Other: These are average costs. It may cost more if you need to pay for someone to care for your rabbit if you go on vacation, you build a large hutch or your rabbit needs special medical attention.

Domestic guinea pig:

• Yearly cost: $420.00
• Additional one-time costs: $165.00
• Other: These are average costs. It may cost more if you need to pay for someone to care for your guinea pig, if you go on vacation, you build a large hutch or your guinea pig needs special medical attention.

Domestic hamster/rat/gerbil:

• Yearly cost: $225.00
• Additional one-time costs: $133.00
• Other: These are average costs. It may cost more if you need to pay for someone to care for your hamster/rat/gerbil if you go on vacation, or your hamster/rat/gerbil needs special medical attention.

Hey, where are the costs for a bird? Aren't they the cheapest pet option available?

Also to note, the above costs do NOT include special medical attention costs -- which is what can really cost a pet owner a ton of money, especially in the pet's last few years of life.

Comments: More on Pets

I can't believe it! It's been three weeks since my last post on the cost of pets. I must be slipping!!!!Thank goodness I recently received a couple of comments on two pet-related posts that reminded me to cover the subject again. :-)

First, here's one that reminded me that pets can not only be expensive, but also quite a pain in the...well, you know:

I have had a small dog now for 13 years. She has been incontinent all of her life. I have found the purchasing diapers (any brand, generic) and cutting a + at the base of where the diaper folds on the side with the decorative border on, and pulling out the pilling from the area around the + so that there is less mess from spillage of the filling and putting the diaper on with the border side on top makes a great fit. You may have to experiment with sizes, but once you've got it, you are on your way to a more fulfilling life with your pet. No more urine in your house and if you make the diapers up in advance, it's a quick change and off you can go without any worries. It is so much less stress on yourself and especially on your pet. You can both now live a long and happy life together.

I responded that this sounded like an outside dog to me. ;-)

I can't remember the costs exactly since it's been several years since my kids were young, but I think I recall diapers being pretty expensive. Add this to yet another potential cost of having a pet.

This second comment discusses the value of pet insurance (as well as talks about some expensive end-of-life costs pet owners must consider) and was left in response to my post titled Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; Whatever It Takes:

Yes on the pet insurance. I had a cat get very sick a few years ago. I ended up having her put down when the treatment options were getting more and more expensive and less likely to succeed. That was about $1500 in vet bills. I would've spent more if the vets thought there was a high likelihood that the treatments would've succeeded, but it was clearly a longshot. Also, she was refusing food and wouldn't keep down what I could force feed her and it seemed clear to me that she was really suffering her last week.

My cats are from shelters, and healthy cats are euthanized every week because there isn't space. So partly I felt that it would be a better decision to give a healthy cat a few years of the good life than to try to keep this cat alive at all costs. But I made myself promise to get pet insurance for my next cat. It's $110 per year, and it will mostly take money out of the equation should anything happen to the cat I have now. For me, it was scary, harsh, and exhausting to have to think about money when my first cat was sick - especially as I was in a terrible emotional state from facing her possible death and being up all night to feed and medicate her.

Again, I'm not anti-pet. I just want to let you know that 1) pets are expensive and you need to take that into account before you get one and 2) a pet is a living being and needs to be cared for accordingly. You need to be sure you're able to commit the time and energy necessary to give you pet a good life.

Annual Pet Costs and A Money Saving Tip (Get a Bird)

As promised in my post titled Annual Pet Costs and A Money Saving Tip (Get a Cat), I'm continuing to look at independent sources to try and verify the cost of having a pet. (For those of you who don't know, I have a whole, complete set of posts on the subject of the cost of pets.) Today's article comes to us from the Consumer Credit Counseling Service who starts with the following thought on the cost of pets:

Ask anyone who owns a dog or cat, and they will likely tell you that their pet really is part of the family. It's no wonder the most crowded stores in any mall is the one with all the puppies and kittens on display. Unfortunately, many people take a pet into their home without really considering the cost.

This is what I've found to be true. People love pets (how can't you?), but they really don't think about the financial implications of getting a pet. All I'm trying to do is bring awareness to the issue.

The piece goes on to list all of the associated costs of having a pet: purchase price, spaying or neutering, visits to a veterinarian, shots, tags, food, boarding, and toys. Boy, it sure can all add up!

The article ends by making a recommendation on owning a cheap pet:

Probably one of the lease expensive pets to maintain is a small bird, like a parakeet or cockatiel. For less than $5, you can buy enough bird seed for a month or more. And while they can create quite a bit of dander, most people keep birds in cages, so they don't create as much of a mess as other pets that roam around the house. Although they're not nearly as cuddly as a puppy or kitten.

Not as cuddly as a puppy or kitten? Wow, there's a revelation.

I'm not really the bird sort of guy (at least not indoor birds), so if I were to get a pet, I'd have to opt for a cat -- the cheapest alternative of the most popular pet options. Alas, my kids are allergic to the hair, my wife is allergic to the litter, and I'm allergic to the cost, so we're petless. We do, however, enjoy the neighbor's cat who I spied the other day in our woods catching a field mouse. I like that cat. ;-)

Annual Pet Costs and A Money Saving Tip (Get a Cat)

When I point out the cost of pets (as I'm apt to do once every two weeks or so), the biggest reaction I get is, "I don't spend anywhere near that on my pet." IN my view, people who make this comment are either 1) really good savers (which means everyone else is spending a TON on pet costs because the averages are the averages), 2) unaware of what they're really spending on pets, or 3) lying. My guess is that most people fall into group #2. It's the reason I keep bringing up the issue: people just don't realize how much their pets are costing them.

But know one believes me -- they think I'm just an animal hater (which I'm not) or a cheapskate (which is not true, though closer to the truth than the animal hater thought). So I've gone out and found pro-animal sources to see what they estimate as the cost of having a pet. I'll be sharing their thoughts with all of you over the next few weeks.

Our first source in this series is Paw Prints and Purrs, a group that rescues and cares for dogs and cats. Here are their thoughts on annual pet costs:

• Large dog -- $1,500
• Medium dog -- $1,115
• Small dog -- $780
• Cat -- $640
• Rabbit -- $885
• Guinea Pigs -- $745
• Gerbil or Hamster -- $455
• Bird -- $235
• Fish -- $185

These are costs for the first year. Some of these costs (spaying, fish tank, etc.) are one-time only. Also, since they are for the first year, the medical costs (which are the REALLY big animal care expenses) are probably understated. As animals get older, they can need some pretty major medical care. Don't believe me? Check out Comments: Sell Your House to Save Your Pet's Life, Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; A Lot, or Financial Horror Stories from Pet Owners.

It's also interesting to see the cost of a cat. Many people have suggested "get a cat" as a pet money saving tip, and it looks like that is the best choice of the dog/cat (the two most popular pet choices) decision. A cat's even a better deal than a small dog (though some cats are bigger than small dogs -- all my cats have been!)

In the end, having a pet is a financial choice like anything else (in that saying "yes" to some things means you'll have to say "no" to others) and totally up to you. I'm just pointing out the cost of such a decision.

Comments: Cost of a Pet is $48,000!!!

I wrote the post Cost of a Pet is $48,000!!! a long time ago (several months) and I've since come to the conclusion that $48,000 is probably a teensy weensy bit high as an estimate for the cost of a pet. Instead, all the data I can find seems to point to an average cost of $1,000 to $2,000 per year, with larger animals costing more (dogs more than cats, bigger dogs more than smaller dogs) and smaller animals costing less. In fact, "get a cat" is one money saving tip I've seen people leave in response to my posts on how expensive pets are. (I saw one suggestion to really go cheap and "get a hamster" on another site.) ;-)

All that said, people are still reading my Cost of a Pet is $48,000!!! post and commenting on it. Here's a comment I received just the other day and wanted to share it with all of you:

Great Dane Puppy (7 months old)

$1000 purchase
$500 travel to breeder and shipping
$750 ($150 * 5 months for food )
$300 crates
$300 beds
$200 bones and treats
$200 toys
$350 rug shampooing
$250 5 months pet insurance
$1500 vet ($1000 less thanks to VPI pet insurance)
$400 training
$280 occasional doggie daycare visits
---------
$6030 over the 5 months I've had him, that's $1206 a month.

Good lord! I hope it gets easier as they get older.

On a side note, at a year he starts to be a therapy dog, and my CPA says we can deduct a portion of his expenses.

;-)

For more pet-related posts, see these links:

• More Reasons Pets are Expensive
• Comments: Sell Your House to Save Your Pet's Life
• You Choose -- Pets or College for the Kids
• Pets Clean up for Holidays
• The Cost of a Pet is Now More than $48,000
• 10 Things Your Veterinarian Won't Tell You
• Comments: The Cost of a Pet is $48,000!
• How Much Would You be Willing to Spend to Save Your Pet's Life?
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?
• Pet Spending Purring Along
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; Whatever It Takes
• Calculating the True Cost of a Pet
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; A Lot

Pet Money Saving Tips

Here are five tips for saving money on pets from Money:

1. Vet your vet. Get recommendations on service and cost before choosing a vet.

2. Get medicine elsewhere (besides from the vet).

3. Be preventative.

4. Beware pet insurance.

5. Skip the gourmet aisle. After surgical procedures, food was the second most expensive item for pet owners. Individually, Americans spent about $250 a year on food for their pets. That's an almost $15 billion industry.

Based on the sources I've seen, my best guess on the average cost of a pet is somewhere between $1,000 and $2,000 per year, so it pays to save all you can. In addition, I suggest you really consider the financial impact of a pet before you get one. Having a pet is fine (of course!) but many people get one not considering (and planning for) the cost and get a nasty surprise after adding Fido to their family.

For more on pets and money, see these links:

• More Reasons Pets are Expensive
• Comments: Sell Your House to Save Your Pet's Life
• You Choose -- Pets or College for the Kids
• Pets Clean up for Holidays
• The Cost of a Pet is Now More than $48,000
• 10 Things Your Veterinarian Won't Tell You
• Comments: The Cost of a Pet is $48,000!
• How Much Would You be Willing to Spend to Save Your Pet's Life?
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?
• Pet Spending Purring Along
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; Whatever It Takes
• Calculating the True Cost of a Pet
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; A Lot

Comments: You Choose -- Pets or College for the Kids; Spending is a Series of Trade-offs

I had a response to my post on You Choose -- Pets or College for the Kids that I thought did a good job of explaining my outlook on spending/saving money. Here's the whole piece:

You're absolutely right that pets aren't cheap. We have a 10 month old beagle and we don't spend on him beyond the necessities - food, an occasional toy, boarding when we travel, occasional minor grooming, etc. - and even then it's not cheap. So I can't imagine how people justify spending extra on the luxuries for their pets.

That said, I think this is one of those quality of life issues. We're humans. We can't deny ourselves every possible pleasure in pursuit of another thousand dollars to stuff into our IRAs. We can cut out the lattes, the sodas, and every other little thing, but where do you draw the line?

Believe me, I'm as financially responsible a person as you'll meet. But sometimes it's important to spend money on things that make you happy. Our puppy makes me smile and runs up to greet me when I get home from work. That's worth something.

I think the real solution is to find that right balance of spending on the extras. Do enough to make yourself happy and enjoy life, without overdoing it. Get a dog, but just one, and cut back on the lattes. Or get the lattes, but take a couple less dinners out each month.

The part I want to highlight is the last paragraph. Dan does a good job of summarizing my feelings on spending -- it's about choices. You can't deny yourself everything or life will be pretty boring. However, you can't have everything or you'll be in debt. It's a balance, a set of choices that each person needs to make for himself or herself.

I just wanted to highlight this thought because I know I can sometimes come off as advocating "don't spend money on anything." That's not my intent. My intent is to share with you ways to save and point out when items are excessively costly. After that, the choice is up to you.

If you want more information on how to save money, see the saving money section of Free Money Finance for all sorts of tips and ideas.

More Reasons Pets are Expensive

To add to my collection of posts on how expensive pets are, comes this piece from
Entrepreneur magazine on 10 Pet Businesses to Start Today. Now this piece could be good news for you -- if you're looking at starting a business aimed at pets/pet owners. However, if you are a pet owner yourself, it's simply a list of expenses you can look forward to paying over the life of your pet.

These businesses include:

• Pooper-Scooper Service
• Pet Photography
• Dog Clothing and Accessories
• Pet Sitting
• Dog Day Care
• Dog Obedience Training
• Dog Walking Service
• Tropical Fish and Aquarium Rentals
• Pet Toys
• Pet Breeder
• Gourmet Pet Treats

Now here are some facts/comments showing how lucrative (for the business) and costly (for the owner) these ideas can be:

• Americans spend more than $30 billion annually on their pets.
• Current rates [for doggie day care] are in the range of $15 to $25 per day, with discounts for weekly service.
• Most [pooper scooper] services charge a flat monthly rate of between $30 and $60 to stop by customers' homes or businesses weekly to clean up their yards, which takes no more than 10 minutes per visit.
• Current rates for in-home training are in the range of $30 to $50 per hour and many trainers create dog-training packages for their customers, which include a set amount of training classes and course materials in print and video formats.
• Once a regular client base has been established for this business [tropical fish and aquarium rentals], the annual profits could well exceed $50,000 or more.
• The fastest growing segment of the pet foods industry is gourmet dog treats. There's a lot of money to be made in this business because the profit margin is very high and people are willing to pay for the best dog treats money can buy.

Funny, they didn't mention pet acupuncture as a good business to start. ;-)

Hat tip to Business Opportunities for leading me to this story.

Comments: Sell Your House to Save Your Pet's Life

If you haven't noticed, there's been a lively exchange between a couple FMF readers over the past few days. The issue started with my post titled Sell Your House to Save Your Pet's Life which detailed some of the expensive medical care decisions pet owners faced. I ended by commenting:

1. Pets are an expense, and you need to consider this before you get one. Sure, it's a reasonable financial decision to have a pet (it's your choice what to spend your money on), but realize what you're getting your budget in for. In the end, you may have to choose between getting a pet and sending a kid to college.

2. If you don't believe pets can be expensive, look at the words that appear above:

• "a staggering cost of $700!!!!!"
• "$5,000 CAT scan which may have been inconclusive!!"
• "holiday spending on pets surpassed spending on human children"
• "We also have spent a small fortune going to a vet ophthalmologist for special eye surgery"
• "there is no cost that we wouldn't spend to give a pet the quality of life it deserves, even if only for a few more months or years"

3. All this "pets are the same as children" talk is driving me crazy. I've had pets and I have children and all I have to say is that there's a HUGE difference between what I'd do to save one of my children (I'd do anything) and what I'd do to save a beloved pet (weigh the cost/benefit as one reader above commented). Pets may be similar to children in some ways, but come on, people, would you really do as much for a pet as you would for your child? If so, that means you'd do anything it would take to keep that pet alive one more day. You'd sell your house to heal your pet. You'd quit your job to stay home with the pet. You'd borrow as much money as you could to keep it on life support. These are things you'd do for a child -- but would you (or does anyone) really do this for a pet?

In response, Bruce left the following comment:

One observation I've made about the "pets are equivalent to children" people is that 90% of the time they are childless, and clueless. They make those statements, and we parents catch each others' eyes and we *know* what the others are thinking. We know that this person has no clue, and that the only reason we aren't tearing into the paper wall of their cluelessness is that we are being nice. The sad thing is that often, the person often seems to think he or she is being cute or endearing, when it has just the opposite effect to many.

Still, even if I am projecting most of that (which I may very well be), it makes me grit my teeth each and every time. Decide beforehand how much you will pay. Perhaps leverage your maximum amount by purchasing 80/20 pet health insurance. But decide and don't feel bad that you've put a number on a life.

For me, that number is $1500 for either of my dogs. That's it, and that would be only if I thought the dog had a chance of living a pain-free, long life afterwards. For my cats, $200, but don't tell my kids that number. For my chickens, $0, since they are old and I could use new vigorous egg-layers. :)

Mike took exception with Bruce's thoughts and commented the following:

I can partially see the first commentors point (Bruce) about the majority of the "pets are the same as children" are childless. Not clueless however. I have made that pets [are the] same as children statement a number of times, and as was mentioned in the post, most (if not all) people, probably including me would go to as extreme an extent, like selling your house, to save a pets life as for a childs life. Obviously I wouldn't have first hand experience with making decisions like that with a child, but I am willing to bet most of the readers of this blog, including the first commentor have had to either, so you really can't say what you would do. My point, which I have mentioned before here and elsewhere, is that if you are a responsible person, maybe even just a "humane" person, you shouldn't have a set "death limit" for your pet. When my dog started having all the problem he did, some of which were similar to the one in this article, like the monthly fee for life part.

Your saying...as many of the commentors have, that you will just stop at $1500, and that is only if you decide it is "worth it". So what happens when you hit $1500? Do you tell your kid "sorry Timmy, we had to kill Sparky because if we spent any more, I would be dipping into the cable bill, and daddy would rather watch the superbowl."

That to me is irresponsible and is just plain wrong. You shouldn't be going into owning a pet with his death sentance already planned out. Sure, everything has its and I, just like probably anyone else that said they view their pets as children, would do whatever was necessary to save my kid. You're not even giving your dog a chance. If your not willing to even attempt to make a sacrifice to save your pet, maybe even if it is only for another year, then you just plain shouldn't have one. Get a fish tank, they are cheaper and don't live as long.

You would really feel fine going to sleep the night after you put your dog to sleep when you hit that $1500 mark? especially knowing that their are plenty of reasonable sacrifices you could have made. It wouldn't....and didn't sit well with me to think that I chose cable TV, a better car, high speed internet access, a cell phone, or whatever other amenities you can think of over a pet...a companion...and a member of a member of the family, like your child, but I don't think anyone said that they would treat both the same.

Setting a limit of $200 on a cat? many of them live a good 20 years. That is just cruel, which again ties into the whole child thing. When you read in the paper about some parent who had been abusing their kid or depriving the child in some way, that is cruel, and shouldn't happen. Obviously not the same as with a pet, but a reasonable person can understand the differance. People spend $200 going to dunkin donuts. That is worth more than spending a little on your cat?

If you go into getting a pet with its death tally already planned out. Just do everyone who actually likes their pets a favor and just not get it.

I spent a ton of money to save my dog. He lived at least 2 years extra just because of that. The sacrifices I made were petty and insignificant. But I, am my dog enjoyed those 2 extra years. When the dog had to be put down when nothing else could be done, my younger brother had a real tough time dealing with it. The decision was all mine since it was my dog, but he lived with that dog his entire life, and now he had to watch him get put down. Fortunately he is old enough to understand why, but how do you parents that know so much more than me tell that to your 5 year old? Is the heartache and torment that they deal with worth anything? or is there a price on that too?

As I said in a previous comment on this topic, the $15,000 plus I spent just in the last 3 years of my dogs life were worth every penny. I would spend it again if it meant that I didn't have to see how heart broken members of my family were. I would have continued the $80+/month for the shot that was stabilizing his system, and I would have gone further if it hadn't reached the point where he couldn't breathe on his own, and would have died...more painfully, on his own days later.

Maybe instead of setting a predetermined limit on a pets life, you should figure out what "adjustments" you could make in your life to keep him alive.

Or maybe instead just watch your kids cry when you needlessly kill your pet.

To which Bruce responded:

Mike, both my kids and I cried when I put down the feral dog I'd foolishly tried to rescue. That's part of life, learning to live with loss and understanding that sometimes hard decisions have to be made. I sleep fine, however. I understood that the priority of safety for both my and other peoples' children outweighed the obligation to keep a feral and dangerous dog alive. In fact, I think it is a good thing for children to learn that Mom and Dad do not have the power to solve all problems.

Similarly, I understand and I am perfectly at ease with my choice to value a dog's life lower than the future education for my children and a comfortable retirement for me and my wife. I would sleep just fine, trust me.

The cat comment? Eh, it was a stray, and it hung around long enough that I started feeding it. Luckily, it wasn't as feral as the dog I mentioned. I consider any continued life it has to be out of pure generosity from my family. We don't owe it a thing.

I strongly disagree that setting limits ahead of time is in any way equivalent to "abuse", "cruelty", or "neglect". They get vet visits, they just don't have an infinite budget because they simply are not infinitely important to me or to my family.

Every dollar entering my family's life has a planned destination. The "latte factor" is not a factor in our lives. There are no instant savings of $200 to be made by stopping going to "dunkin' donuts".

I am amazed that you consider $15,000 to be "petty and insignificant". I wish I had that kind of deep pockets. My family makes well above the mean for the country, but we don't have that kind of discretionary income. A $15,000 windfall from cutting "insignificant" expenses in my family would be spent as follows:

Fully fund 2005 Roth IRAs for my wife and me: $4000
Fully fund 2007 Roth IRAs for my wife and me: $8000
Partially fund Oregon 529 for my three children: $1000 each

As you probably can imagine, Mike wasn't having any of that, and responded with the following:

It isn't that the $15,000 is petty or insignificant. That money would have put me at least $15,000 closer to buying my first house. It would have made my life significantly easier than it is right now. My point was just that in my case I don't really regret that I spent all that money on my dog. I just have big issues with having a set budget beforehand for living things. I also took the clueless comment more personally that you may (or may not) have ment. I would be a fool to think that a dog and a human have the same value.

I may have over simplified the "latte factor", my point was that for "most people" as you originally mentioned, some smaller sacrifices could be made to possibly save the pet. I am sure you budget your money magnitudes better than I do, maybe you don't make a lot of frivilous purchases, but like you originally said. Most people don't go to that extent. I have been trying to get my finances in order for a while now. That was next to impossible having things like a pet that I considered an obligation to take care of. Since he had to be put to sleep I havn't gotten a new dog because I don't have the extra money for anything aside for the regular vet visits. That is pretty much what point was. If you can't afford a pet, you (people in general) shouldn't get one

I just can't see past the set budget part. Pets aren't toys. They can very easily end up being a massive expense. My case being a good example. I don't think people should go into owning a pet with the mindset that they aren't going to do much for the animal if a big problem arises. What happens if a problem arises and everyone in your family became really attached to the pet? I am not trying to say you are heartless, but that budget could easily change if something actually happened. I can see the $1500 or whatever budget you chose as being more of an emergency fund. I don't know how far I would have gone financially with my dog if I was married at the time, or had kids, but [comment ends here].

Here are my thoughts:

1. Good discussion, guys. And entertaining.

2. As you can guess, I am more in agreement with Bruce, but that's a personal preference. When I asked people previously how much they would spend to save their pet, the average was in the $1,000 to $2,000 range, so Bruce is in the middle of the pack. I don't have pets (my kids have allergies), but I am in agreement with the principle of setting a limit on what you'd spend to save a pet. It's what I would do if I were an owner.

3. Mike has every right to spend whatever he wants on his pet (did he say $15,000???!!!!). After all, it's his money. I wouldn't, but it's his choice. What I do disagree with is the thought process that equates (either consciously or subconsciously) a pet's life with a human's (Mike says a child is worth more than a pet, but his following comments indicate he really believes otherwise). It's just not even close no matter what anyone says. Not only morally as people do we know that humans are worth far more, but our laws reflect this. (When was the last execution of a criminal for the murder of a dog?) I'm not trying to be crass, but come on, there's a HUGE difference here.

Unfortunately, some people don't live this way. Instead, they value pets as much as or even more than humans. Here's a comment from a third person to my post:

Aside from chickens, I grew up in a pet free home. Maybe that makes me heartless.

Sometimes it seems that my bf's parents love their dogs more than they love him. When he was a young child and he had nightmares, his mother wouldn't let him sleep in her bed at night because he would crowd the dog out of her place on the bed. His mother wants to commission an artist to paint an oil portrait of her current dog, but I've only found one baby picture of him in the entire house. His father, buys steaks for his dog, but couldn't spend a penny on his only son's college education, or on child support for that matter.

So yes -- some people are a lot kinder to their dogs than they are to their children . . . and maybe they even love them more than their children. And yes, those people should go with their heart because they deserve the consequences of their twisted love.

4. I regularly write about the topics of pets and money because these are the issues all would-be and current pet owners need to consider -- the former needs to grapple with the potential costs before getting a pet and the latter needs to consider what to do if/when the "expense versus pet's life" issue arises.

Sell Your House to Save Your Pet's Life

I saw a post the other day where a group of people were talking about costs of pet ownership and what to do when faced with a large medical expenditure for a pet. You can read the whole post by clicking on the link if you like, but here are the highlights I wanted to emphasize. First, from the post itself:

We have two treatment options for the hyperthyroidism [our cat has].  One treatment is a one-time fix where he's injected with iodine and irradiated stuff to kill the tumor on his thyroid...for a staggering cost of $700!!!!!  The downside to this option (beside the jaw-dropping, "Holy Crap!" inducing cost) is that if it doesn't do the trick, the other treatment won't work.  The other option is to put him on medicine for the rest of his life that costs $30/month and requires yearly bloodwork to adjust the meds. I feel like a horrible owner that I even have to think about which treatment to pick, or that I even have to worry about where the money is going to come from. 

Now, here are some highlights from the comments:

• Have you known your vet for some time? Have they always been dependable? Can you get a second option? I had a few nightmares with new vets (going in for a spay and getting an additional charge for microchipping although my dog was already microchipped!!!) Also my dog went blind last year after developing SARDs and they wanted me to get a $5,000 CAT scan which may have been inconclusive!! And then started talking about spinal taps??!! Another hefty and invasive procedure. Needless to say I got a second opinion and am very glad I did. But it's worth going through the treatment, just make sure it's necessary.
• Interesting tidbit I heard over the holidays - holiday spending on pets surpassed spending on human children. Our doggie doesn't really play with toys, but people keep giving them to us...there are a few homeless guys with dogs around where I work so I try to give a few to them.
• Go with your heart. Money is money and you can always make more, but you can't earn more time with a friend. Our dog is a friend and a child in one. We also have spent a small fortune going to a vet ophthalmologist for special eye surgery, sigh. But we love him dearly.
• I've faced similar situations, but have never thought twice about the money to save a pet if there was any possibility that the life of my child (pet) could live relatively comfortably whether on medication, weight loss, etc. We know that a pet is a family member, a child to us, and that there is no cost that we wouldn't spend to give a pet the quality of life it deserves, even if only for a few more months or years.
• Kitty is already 13. Is it going to live 2 more years? Between $700+ irradiation (that may not work) and $30/mo therapy, in numbers that's ~23 months. Sure, kitty is part of the family. So think about its quality of life, and your risk vs. reward. Seriously, people weigh similar debates in their elderly years about their own health costs vs. longevity. Nothing last forever, not even us, no matter how invincible we may feel. This isn't like putting gas in a vehicle that is up on blocks, but you get the idea, no? Go with your heart...then see if your personal finances would survive as well.

Ok, a few comments from me:

1. Pets are an expense, and you need to consider this before you get one. Sure, it's a reasonable financial decision to have a pet (it's your choice what to spend your money on), but realize what you're getting your budget in for. In the end, you may have to choose between getting a pet and sending a kid to college.

2. If you don't believe pets can be expensive, look at the words that appear above:

• "a staggering cost of $700!!!!!"
• "$5,000 CAT scan which may have been inconclusive!!"
• "holiday spending on pets surpassed spending on human children"
• "We also have spent a small fortune going to a vet ophthalmologist for special eye surgery"
• "there is no cost that we wouldn't spend to give a pet the quality of life it deserves, even if only for a few more months or years"

3. All this "pets are the same as children" talk is driving me crazy. I've had pets and I have children and all I have to say is that there's a HUGE difference between what I'd do to save one of my children (I'd do anything) and what I'd do to save a beloved pet (weigh the cost/benefit as one reader above commented). Pets may be similar to children in some ways, but come on, people, would you really do as much for a pet as you would for your child? If so, that means you'd do anything it would take to keep that pet alive one more day. You'd sell your house to heal your pet. You'd quit your job to stay home with the pet. You'd borrow as much money as you could to keep it on life support. These are things you'd do for a child -- but would you (or does anyone) really do this for a pet?

I'm just askin'.

You Choose -- Pets or College for the Kids

Ok, here's a post most pet lovers will hate.

I've written a lot about the cost of pets and whether the cost of a pet is more than $48,000 or $12,000 to $23,000, the fact is that they are expensive (after all, they need their acupuncture treatments, fancy Christmas presents, and the like).

But let's do a little math. Let's assume:

• Your pet lives 15 years
• The cost of the pet during that time is $17,000 (midway between the numbers above, rounded down)
• You only own one pet at a time (several people own two or more)
• You own the pets back-to-back through your adult life (i.e. one dies and you get a new one right away)
• You own pets from age 25 to age 70

Under this scenario, you will own three pets in your lifetime at a cost of $51,000. If you own two pets instead of one (after all, Fluffy gets lonely), that's over $100,000. Yikes!

I've joked before that there's a trade off between having pets and sending your kids to college or owning a few nice, new cars, but the fact is, that's not too far from the truth. Owning a pet is a financial choice you really need to consider before you take the plunge.

The pet owners reading this can now commence berating me in the comments section below.

Pets Clean up for Holidays

Ok, it's a bit late for a holiday-related shopping post, but I wanted to get to this one for sure, so it's better late than never.

This piece from USA Today talks about how pets were expected to clean up with some pretty nice gift options this holiday season. Here are the highlights:

An estimated 31 million dog owners will buy gifts for their dogs, including indulgences such as high-tech gadgets and glittery accessories.

Holiday pet-gift sales rose 15% in 2004 over 2003, says Bob Vetere, chief operating officer of the American Pet Products Manufacturers Association. "By buying pets a human-type gift, we are making ourselves feel good and making them happy," he says.

Among the pet extravagances:

• Pet bling.
• Gadgets.
• Riding in style.
• Relaxing in style.
• Spa treatment.

I knew it! I knew it!!! I told you we'd see a pet health club (close enough to a spa) when I wrote Pet Acupuncturist a few days ago.

Top 10 Post Topics of 2005: #8 Pets

Here's #8 in the list of the ten biggest issues/concepts/thoughts at Free Money Finance during the previous year: Pets.

I selected this category because:

• I wrote a lot about it.
• It's something that has a significant impact on finances, but most people don't treat it as such.
• It's controversial (and emotional for most people).
• It's generated a lot of discussion.

It all started when I wrote Cost of a Pet is $48,000!!! I talked about how much pets cost people. Little did I know. People responded and I then posted the financial pet horror stories they told me. From there, everywhere I looked, I seemed to find stories on pets and money. In case you missed any of these, here's the list of money-related pet stories:

• The Cost of a Pet is Now More than $48,000
• 10 Things Your Veterinarian Won't Tell You
• Comments: The Cost of a Pet is $48,000!
• How Much Would You be Willing to Spend to Save Your Pet's Life?
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?
• Pet Spending Purring Along
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; Whatever It Takes
• Calculating the True Cost of a Pet
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; A Lot

In the end, owning a pet is a financial decision as well as a family decision, and of course it's your right to decide to have one (or several). I'm not saying you shouldn't. All I'm saying is that an animal will cost you $10,000 or more through it's lifetime and if you have 4-5 animals during your adult life, that's enough to buy two (nice) new cars, send a kid to college, or do whatever else you might like to do with $50,000 or so.

Just food for thought.

Click here to read topic #7.

First Cloned Dog Has Its Day

Yep, you knew it was coming. I'm having too much fun to stop posting about the cost of pets.

Here's a piece from Fortune that talks about the first cloned dog (subscription required). I'll just cut to the chase:

A lot of U.S. researchers are muttering "doggone it" today: South Korean scientists have won the international race to clone a dog. A team led by Seoul National University’s Woo Suk Hwang, renowned for world-leading stem-cell research, reported in the journal Nature today that it has produced two genetic duplicates of a male Afghan hound.

Unfortunately, this doesn't mean your dog will be available to be cloned tomorrow:

But the Koreans’ work isn’t likely to enable the commercial cloning of adored Fidos and Fifis anytime soon. Dog-cloning still requires world-class craftsmanship that isn’t yet available to pet owners. Genetic Savings, however, is developing a technology called chromatin transfer that promises to make it easier. The firm’s success remains to be seen. But its feline feats give hope—as that great naturalist Hamlet said, "The cat will mew, and dog will have his day."

However, you know that the ability to clone pet dogs will be made available as soon as it's a viable science. There's too much $$$$$$ at stake. Can you imagine what they could get for a cloned dog? $25,000? $50,000? More?

Pet Acupuncturist

Ok, now I've heard of everything.

Here's a piece I first read in Fortune and then found online at their site on a guy who's a pet acupuncturist (subscription required). Yep, you got that right. I know hard to believe.

Here's the scoop:

I'm a veterinarian, and I had the same skepticism about acupuncture that anyone would have. But then I began to see the results. Acupuncture can be an alternative when an animal can't take pain killers, or has a slipped disc or arthritis. People come back and comment on how their pets are jumping up on the couch again. They're playing with toys they haven't played with. I treat mainly dogs and occasionally cats. I've treated rabbits, and I treated a ferret and an iguana once. Most animals are very accepting. Sometimes we'll feed them little treats, and they just chow out and totally forget what you're doing. There are several methods of acupuncture. Sometimes we attach electrical stimulation to the needle. If the animals show no improvement in three to six treatments, we don't continue. If they do, we treat them weekly until the effects last from week to week. I've been treating one pet for nine years. I really feel I've made a difference in many of my patients' lives. And when I say patients, I'm talking not just about the four-legged ones. The sessions can be extremely rewarding. The pet is relaxing, the owners feel as if they're doing something for the animal, and you're helping the animal heal itself. It's a very good feeling.

I don't know where to start on this piece. I mean, it's just too easy. I guess I'll just dive in:

"I'm a veterinarian, and I had the same skepticism about acupuncture that anyone would have. But then I began to see the results."

Translation: "I thought it was wacky, but when I realized that people would pay me outrageous sums of money for poking needles in their pets, I changed my mind. (Especially as I began to see results in my bank account.)"

"I treat mainly dogs and occasionally cats. I've treated rabbits, and I treated a ferret and an iguana once."

Is this funny to anyone but me? Can you envision him treating a ferret or an iguana with acupuncture? What's next, a fish?

"Sometimes we'll feed them little treats, and they just chow out and totally forget what you're doing."

Hidden quote: "I really love this because I can charge $7.50 per treat. If I keep shoveling them in, a big dog can eat six or seven before he gets so bloated that he can't eat any more. But I don't care since I can then charge for treating him for indigestion."

"Sometimes we attach electrical stimulation to the needle."

I would PAY to see him use needles with electrical stimulation on a ferret or an iguana. Especially the ferret. Can you say, "attack, ferret?"

"If the animals show no improvement in three to six treatments, we don't continue."

Hidden quote: "By then I've already gotten enough out of the owner to pay for a new bass boat."

"If they do, we treat them weekly until the effects last from week to week."

Hidden quote: "This presents me with a better source of recurring income than any investment vehicle ever could."

"I've been treating one pet for nine years."

Hidden quote: "I have a 4-story wing built on to my house named in this pet's honor."

"I really feel I've made a difference in many of my patients' lives. And when I say patients, I'm talking not just about the four-legged ones."

Hidden quote: "For instance, one guy used to be fairly well-off. Then he started seeing me, and I've reduced his bank accounts to rabbit fodder and now he's the one eating pet food. Yep, I've certainly made a difference to him."

"The sessions can be extremely rewarding."

Hidden quote: "In fact, they're so rewarding that I can buy a compact car or two from the payments due on three or four treatments."

Ok, I've had my fun, but I just couldn't help myself. This seems so ridiculous. I know, someone will probably comment on how their pet's life was changed by acupuncture and berate me, but I still couldn't help being a smart-aleck on this one. It was just too easy.

To end, I have a couple lists for you. The first is a short list of pet services/products I won't be surprised to find after reading this piece:

• Doggie cosmetic surgery
• Kitty Viagra (made from the glands of rabbits, of course)
• Pet health clubs
• Psychiatric help to get snakes over their need to eat poor little mice]
• Blog services aimed at birds telling their stories of flight and the atrocities of "the cage"
• Pet financial management (now there's one I could be into, if you know what I mean $$$$$$$$$)

Feel free to add your own ideas in the comments below.

Here's the last list -- a list of posts I've written on pets and the costs of them. If you're going to have to pay for acupuncture and who knows what else, the costs can really add up. Read these for more info:

• Calculating the True Cost of a Pet
• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; Whatever It Takes
• Pet Spending Purring Along

Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; A Lot

Contrary to what may be popular opinion, I am not a pet hater. In fact, I love animals. However, I do point out that there is a pretty big cost of pet ownership and people need to take this into consideration before they decide to get a pet. I think most people give the issue very little (if any) thought.

Here's a comment to my post on How Much Would You be Willing to Spend to Save Your Pet's Life? that tries to address the question I put forward:

I don't have a pet yet but will be bringing home my puppy in a couple months. I am already planning to spend $1500 just to bring him home and that is just the cost to the breeder. Then there is at least another $500-$1000 in initial vet shots and all the items he will need to make my home his as well. It is hard to say how much I would be willing to spend if heaven forbid something happen to him but I know I wouldn't just turn my back on him.

A few thoughts:

1. This person is spending $2,000 plus just to get a dog and set him up. I know there are much cheaper ways of doing this (a dog at the pound, some shots, and a bag of food), but there are more expensive ways as well. All I'm saying is "consider the cost." This is what some people spend on a car.

2. I never said you should turn your back on a sick pet (if that's what the commenter was implying). I said that I wouldn't spend anywhere near the amount to save a pet that I would to save a human (like one of my children). This was in response to a commenter who said she would spend whatever it would take to save her pet and that a pet's life was worth the same as a human life. I disagree.

3. Whatever you'd spend to save your pet, it's likely that it will be an expensive choice. If you are willing (like many people are) to spend $2,000 or more to save your pet, you better be saving up for it now. It's a future expense that's highly likely for many pet owners.

Free Money Finance recommends Emigrant Direct. It's a great place to save for that $3,000 facelift your dog will eventually need. ;-)

Calculating the True Cost of a Pet

Well, well, well. The Wall Street Journal is finally getting with the program.

With their article on Calculating the True Cost of a Pet this past weekend, they join the likes of these "famous" (or should I say "infamous"?) posts by me:

• How Much Would You be Willing to Spend to Save Your Pet's Life?
• Cost of a Pet is $48,000!!!
• Financial Horror Stories from Pet Owners

Though they come up with less of a cost than I do, they still show that it's an expensive undertaking. here's the bottom line:

How much? Almost $12,000 over a lifetime for a small dog that lives 15 years, and more than $23,000 for a larger breed that lives for 12. Those are just averages; the numbers grow quickly if, say, illnesses require trips to the vet.

I can hear the throngs screaming, "NO WAY!!! There's no way my Poopsie costs this much!!! What animal-hater calculated this number?"

Not an animal-hater at all. It's from an animal lover:

These figures come from Jim Wilson, a veterinarian, lawyer and consultant who has created a detailed spreadsheet, down to the last chew toy, using data from the American Pet Products Manufacturers Association, the American Veterinary Medical Association and owners. Dr. Wilson crunched the numbers as part of his research into damages in lawsuits over pets and his work for a pet-insurance company.  "People think they can get the puppy from the pound for $125," he says. "And they honestly don't have a clue as to what the annual costs are going to be."

Here are some other quotes I found interesting:

Some highlights from the spreadsheet: "Destruction of Household Items" averages $1,000 for a larger dog. Dr. Wilson knows of a Weimaraner that chewed up $3,500 worth of SUV dashboard. "Sometimes a tail takes out a whole table, and then you have broken china, red wine stains," he says. "Nobody takes that into account."

It's the veterinary bills that can really add up. These days it's a snap to spend a four-figure amount or more on care that wasn't even available a decade ago. That can lead, inevitably, to difficult choices. Trade journal DVM Newsmagazine asks vets every three years for the dollar amount at which most clients would stop treatment. In 2003, it stood at $961, up 67% from the 1997 figure. A 2004 American Kennel Club survey of dog owners found that 14% said their current ownership costs would deter them "significantly" or "quite a bit" from getting another one.

Then the article gives some hints on how to minimize your pet costs:

• Before you buy, see a vet for a "pet selection" appointment. Once there, ask about recurring costs and potential genetic and behavior problems.
• Also set a realistic budget.
• Finally, consider insurance.

Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; Whatever It Takes

Here's a comment someone left in response to my post How Much Would You be Willing to Spend to Save Your Pet's Life? At the end of that piece, I asked readers how much they would be willing to spend to save their pet's life and here's what this reader had to say:

I would spend whatever it took to save my pets. But unfortunately we don't have the money to save our kitten Rolly who was just diagnosed with Hydracephulitis. It will cost thousands of dollars to save him. My children are trying to raise money to save him right now. I would do anything for my children, and I want them to learn compassion. They love this little kitten and I can't just let him die. When you take on the responsibility of a pet, you make them part of your family. How much would I spend? If I had it I would spend whatever it took. You can't put a price on life. God loves all of his creatures. Rolly was not born just so I could have him put to death!!!! If I had a million dollars, I would spend it to save him!

My thoughts:

1. This is but another reason to really think it over before you get a pet.

2. If you think as this reader does, that a pet's life is as valuable as a person's (and thus you need to spend whatever it takes), you should really, really, really consider pet insurance. Otherwise, you could end up with a very sick pet and bankrupt yourself.

3. Personally, I love animals. But there is no way that I would value them any where near the value I'd place on a human being -- and I wouldn't spend anything close to save an animal compared to saving a human.

What do you think?

Pet Spending Purring Along

In the grand tradition of pet-related posts here at Free Money Finance like How Much Would You be Willing to Spend to Save Your Pet's Life?, 10 Things Your Veterinarian Won't Tell You, and Cost of a Pet is $48,000!!!, here's an article from Business Week on how pet stocks make great investments. (Translation: People spend a lot on their pets and they are going to spend more in the future.)

Here are the highlights:

S&P equity analyst Michael Souers is bullish on the stocks of three companies that serve pets and the owners who love them. Why? The numbers paint a very enticing picture. According to the American Pet Products Manufacturers Assn. (APPMA), sales of pet products topped $34.4 billion last year, more than doubling the level seen in 1994.

Based on a recent survey, more than 69 million U.S. households, or 63%, own a pet. Of course, one isn't always enough -- 45% of those households own two or more.

The dog remains the most popular nonhuman companion, with more than 43 million households owning one. In 2004, households spent an average of $1,571 on Fido. Cats follow close behind, with almost 38 million homes cleaning up furballs. However, since they usually come 10 to a tank, freshwater fish are the most populous pet in the U.S. The APPMA estimates 139 million of them are swimming in 14 million homes.

"Pets are being considered more like family members than ever before," Souers says. "As a result, we think sales of pet products should be somewhat insulated from the economic pressures weighing on other consumer-discretionary items." In other words, a choice between new shoes and taking your sick dog to the hospital isn't really a choice at all.

According to industry data, consumers spent more than $18 billion on animal health-care services in 2001. Souers expects that number to rise consistently as diagnostic testing for animals increases in popularity and expands in scope.

I don't think I need to say much more than is already highlighted other than reiterate that you should add up the costs before you decide to get a pet (or another one).

Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?

As regular readers know, I have a long history of posting about the costs of pets and how people need to calculate the true cost before getting a pet.

My most recent post on this subject was titled How Much Would You be Willing to Spend to Save Your Pet's Life? and featured a re-cap of an owner's attempt to save her pet's life and how much it cost her (a lot). At the end of that piece, I asked readers how much they would be willing to spend to save their pet's life and I received several responses. I'd like to share those with you today.

We begin with a comment I myself could have made:

I would be willing to invest $0.00. (I don't own any pets) I'm sure that makes me fairly unpopular with everyone, including my veterinarian family member.

I would spend every last cent I have to help my children though.

Next is our first answer from a pet owner:

That's a tough one. I never had a dog growing up, but as soon as I was on my own I adopted one and couldn't be happier. I never would have imagined how much happiness my big boy has brought to our family. With that being said, I'm also realistic about what I would spend to cure any ailments. I have heard horror stories from other pet owners about spending thousands on care. Even though my dog has several years (hopefully) before this begins to be a concern, I have given some thought on a dollar amount. At this point I think I would cap it at $3k. Even that seems high to me, but not sure what I would really do if I was in that situation.

Yes, it's hard to tell what you'd do in that situation.

Here's another reader struggling with the question:

oh boy. tough call.

If you have a pet and you love 'em.. placing monetary value on anything (and living thing for that matter) that you love is a tough cookie.

I don't have a pet, but I do spend enough time with my girlfriend's dog that I'll help financially if the dog gets sick.

I think $2,000 or $3,000 would be the ball park for me. Doesn't seem right to put a figure to it though. I know a friend who spent thousands trying to save her dog. It didn't end so well too...and this was a time when my friend was cash strapped too.

Why is it always the cash-strapped people who spend thousands on pet care? (FYI, this was the case in the article I originally discussed -- the author was in debt but chose to try and save her dog anyway).

Next is a comment that shows the reader is thinking about this (expensive) issue:

I love pets, but the major reason I don't have one right now is that I don't feel I'm financially secure enough to pay for anything that could happen to one.

I don't think it's right to buy or adopt a pet, and not have enough money available to help it if it got sick or hurt.

There is a limit to how much I would spend, but I would guess that would depend very much on my financial situation at the time. I would say $2000 would probably be an upper limit for me, and I would take that amount out of my emergency fund in a heartbeat if I needed to. It would probably be higher if I felt more financially stable.

And while most of us are probably thinking of saving a cat or dog, there are other animals (and probably even bigger expenses):

Tough one too... My wife and I own horses. We had a 12 year old arab mare that was very sweet. She was just off a breeding lease (unsuccessful) and her previous owner had finally gotten her financial house in order and was about to start paying us to buy her back. 10 days after the insurance policy attached to the breeding lease lapsed she colic'd. The vet came out and took a look at her, gave her some meds and was off. My wife and the girl who was buying her took turns walking her around for 1/2 the day. In the afternoon when she was no better, they called the vet who said she should immediately be taken to Michigan State. They loaded her up and took off on the 2 hour drive.

Once there, they opened her up and found that her intestine had wrapped around a fist sized fatty tumor and died. They removed about 5 ft of intestine, cleaned her up best they could and sewed her up. She survived the surgery ok but ended up with laminitis (infection in her feet). We supported her for a week and a half but she wasn't recovering and her prospects were not good (< 25% chance). So we decided to put her down.

Total cost: $5000 for a horse we originally paid $2500 for... At least she made a nice baby for us... :)

The next comment is from a reader who is dealing with this issue right now:

That's something that I think about every other day. I have an 18 yr old cat. So far, I've been able to get away with the basics that promote his health - he's been fixed, has his shots, fed well, watered, clean litter box, treat any scratches and abcesses that come up. I've been lucky but I've been observant with him and know his habits. We've had a couple of scares every three years or so, but nothing that cost more than $500.

Since he has lasted for a long time, I'm not interested in heroic measures to save his life, but only procedures that would keep him comfortable. I've been told by other cat owners that when an old cat starts to really go, he'll go fast.

Bottom line, I've budgeted about $2500 for him. It should provide for some primo-medicinal grade catnip.

Finally, here's a comment from someone who clearly doesn't have children:

I look at pets almost at the same level as a having a child. If you don't want to do everything you can for an animal that is essentially a full member of the family for a good portion of your life, than you shouldn't have one. My last dog lived to be 12, and the last 3 years of his life were full of constant medical problems. Pneumonia, Hip problems, Addisons disease, a non-cancerous tumor that had to be surgically removed, 4 full days spent in the intensive care unit of a hospital, and in the end, a non-stop nose bleed/sinus problem that lead to him no longer being able to comfortably breathe. I did everything I possibly could for him and brought him to multiple doctors and specialists. In the end I would guess that just in the medical problems over the last 3 or 4 years of his life I spent in the range of $15,000.

Which is the exact reason I haven't gotten a new dog after he passed away. I just can't afford it at the moment, and don't feel its right to get a dog and then just put him/her to sleep at the first sign of a problem. Of course this is a more extreme example, but I still think the $15,000 was worth the 12 years of happiness he gave me. I haven't gotten that kind of return out of anything else you can put a dollar figure on....

I can't leave this last one without commenting:

Kids versus pets is not even close. I think almost everyone who has both kids and pets would say that while they may spend a few thousand dollars to save a pet, they would give their lives if it would save their child(ren).

How about you? Do you have a figure you'd be willing to pay to save your pet's life? Leave a comment and add your 2 cents to the conversation.

How Much Would You be Willing to Spend to Save Your Pet's Life?

Long-time readers of Free Money Finance know that I've posted several times on the topic of pets and money (I even have a category called "Pets" on the right side of this blog). Somehow stories about the topic just come to me. Like the one I found recently in the September issue of Reader's Digest.

The piece "Anything for My Dog" was both saddening and interesting for me. It was saddening because I could really feel for the author as she dealt with the sickness of her beloved pet and how she wrestled between reason (what it cost to save him) and emotion (her love for him). As a reader, I could see that it was a hopeless cause, and it made the article even more heart-wrenching.

The article was interesting because it brought up a relevant financial topic: how much would a person spend to save their pet? (I would have said "how much would I spend" but I don't have any pets -- my kids and my bank account are allergic to both cats and dogs). Here are a few of the financial tidbits from this piece that had me wondering:

• I nodded and tried harder to act like a $1,400 veterinary brain scan under general anesthesia was no big deal.
• And what if there was a tumor? How would I know how much treatment was right and how much was too much? And how much could I afford? Already we were flying on credit cards; I'd just refinanced my house to pay off debt, and now the numbers were rising again.
• At the country's leading veterinary teaching hospitals, surgeons now routinely perform procedures that once were reserved just for racehorses and champion purebred dogs: kidney transplants, chemotherapy, hip-joint replacements.
• From 1987 to 2000, the life spans of the average dog and cat increased by more than one-third, thanks to better food and widespread vaccination. But longer life means a jump in the diseases of old age -- cancer, organ failure, arthritis. With the family pet now ensconced on the bed instead of in the yard, medical problems are easier to spot and harder to ignore. The average veterinary bill -- which doubled from 1991 to 2001, to $91 -- reflects this.
• The brain scan was negative. But in early March, Bear began to run a high fever. The vet made an emergency house call. He thought Bear's spleen looked distended. Have an internist check it with an ultrasound, he said.
• The spleen was fine, but the test revealed something much worse. There was a hole in Bear's intestine, and a massive abdominal infection. There were two options: operate immediately, or, the doctor said, "I'm afraid we have to put him down."
• But Bear died on the operating table, before the surgeon could save him. He was weak from infection, and his heart did not tolerate the anesthesia, the vets said.

As I said, it was a sad tale. And when looked at from a financial standpoint, it was even more sad. The author doesn't say how much she spent in total, but these items do not sound cheap:

• Brain scan (we know that this alone was $1,400)
• Emergency house call by vet
• Ultrasound
• Operation

This doesn't include other doctor's visits, medication, and the like that were also spent during this time.

So, this leads to my question: How much would you spend to save your pet's life?

I'm really interested in your thoughts and comments. And please, give numbers if you can (unless you say "any amount needed"). For instance, don't say that you'd spend "a lot," but give an amount. $1,000? $2,000? $5,000? $10,000? Let me know what you're thinking.

Comments: The Cost of a Pet is $48,000!

I am so, so, so, so far behind in posting some great comments that I don't know what to do (FYI -- I currently have 407 unposted comments that I at least want to consider posting!). It's not really my fault, of course, it's yours. All of you. You keep leaving such great thoughts and suggestions and so many of them that I just can't keep up!!!! ;-)

Seriously, there are a lot of wonderful comments and I want you to keep them coming. Maybe I'll have "all comments" week one week to catch up (ooooh, now that I say that, I just may do it!). Anyway, if you're not reading the comments here at Free Money Finance, you're missing a lot.

One of the most unusual, controversial, and interesting posts I've ever written was titled "The Cost of a Pet is $48,000!!" I wrote it when I saw that a website estimated that the average pet owner spent $400 per month over the lifetime of a pet. I then calculated the months in a pet's life and got to a total cost of $48,000.

As you might imagine, I got a lot of poo-poo comments like "there's no way my dog/cat costs that much". However, I also received several "you can't believe what I spent on my pet" comments and from these I wrote a follow-up article titled "Financial Horror Stories from Pet Owners". From there, the topic just grew.

I wrote about the fact that "The Cost of a Pet is Now More than $48,000" since people are now paying tons of money for designer dogs. I then ran into posts that other people had written about the wild costs associated with their pets and I wrote "Costs of Pets Posts". I posted on "10 Things Your Veterinarian Won't Tell You" too. Finally, I felt like I'd written so much about a topic that wasn't in the mainstream of most personal finance discussions that I wrote "Costs of Owning a Pet, Part 165".

As you can imagine, I received a few good comments along the way and I want to share a few of them with you. We'll start with a friend of mine who posted the following:

With my dog it comes far less than $400 per month. Heck, I don't spend that much on my two kids! My golden retriever was from the humane society for $100 and that including the "fix". You don’t need to spend big bucks on pure breed champion dogs to get a good one. We bought two dog dishes and got an old quit from the Salvation Army for $5. Her fetch toy costs less than $5 and I got a free doghouse from a friend. The most expense is the once a year vet visit with heartworm pills and shots. That's about $200. Then add in dog food and treats and it's that’s about $25 per month. The amount of pleasure my children get from the dog far exceeds the $500 per year we pay. If you decide do not take the family out for dinner once per month you have covered the cost of the pet with ease. Seeing the kids playing and loving the dog is a greater overall benefit than one meal at a restaurant. Your kids will always remember the dog but they will never remember that missed restaurant meal. This is fiscal responsibility.

Well, I guess he told me! And just in case I wasn't pummeled into submission, someone jumped on the bandwagon to agree with him:

I concur with Bruce, with the exception that I paid more for my dog but even counting that spent far, far less than $400 per month (even for the first six months). I'd had a dog before, so I already had all of the "durable goods" I needed (and much of that from friends, Goodwill, or purchased on sale); the breeder supplied all but one of the shots etc., and I get heartworm preventative at a huge discount from Australia. $5 rabies shots from the county. I have a big dog so I buy a lot of food, but I buy it in bulk so it's cheaper per pound. If I spend much more than $400/year on average I'd be astonished.

Here's the same sort of comment, but a little more balanced:

I have a dalmation and two cats. For my wife and I, the most expensive part is the food. I do buy good food, and on that I spend about 30$/mo. Once a year they all get shots at the discount mobile vet ( www.pet-vax.com). I buy hairball remedy-treats in bulk, but I've heard a little bit of petroleum jelly on their nose will do just as well. The dog won't behave without a little bit of treats, so we buy those in bulk too. Boarding is really expensive, so we have a neighbor who has a pet-sitting business take care of them. She's not cheap either. No doubt, pets are definitely an extra expense and the cost should be thoroughly considered before purchase. I agree that I do enjoy them and I feel that they're worth every penny. My wife and I have made agreements that if anyone became ill, the most we would spend on attempting to return them to health would be a set amount before deciding to have them put to rest. She had the dalmatian and I had the cats before we were wed.

Here's someone who's done the math (which I recommend) and it's not pretty (though they are below $400 per month):

I tracked my dog's costs over the years, she's a Black Lab mix we got from a pound, and is the sweetest doggie in town. Costs for everything average $200 a month, and she's 15 years old. Her meds are quite expensive in her old age, and she had surgery when she was younger. We also incur kennel costs a couple of times a year when we travel. She's the best doggie in the world, and we gladly take care of her. But it occurred to us last year that the amount we spend on her annually amounts to a mortgage payment. Yikes!

And didn't ya just KNOW that someone was going to start the whole "which is better -- a cat or a dog -- argument"? This person also makes a good point -- pets are cheaper than kids:

I'm going to argue that cats don't cost as much as dogs do, but, that said, I probably spend about $100/month on my two cats. They are both young, though, so I so far have not had to deal with too many health problems. But that said... kids are so much more effin' expensive then that. Since I never plan to have kids, nor do I have to send my cats off to college, consider how much money I'm actually saving! ;)

Then, they turn on me again, this time criticizing my logic when I talked about the cost of pets going up due to designer dogs being the rage:

Flawed logic... Just because some people spend exorbitant amounts of money on pets doesn't mean owning a pet is getting more expensive. It's similar to the wedding expense posts. Ms. Princess spends $250,000 on her wedding and raises the average, but that doesn't affect the cost of my wedding. Yes, there is potential to spend more, but the true cost doesn't change.

No matter how much someone spends on their labradoodle, you can still buy a dog for $80 at the humane society. Wait a year, and you will likely be able to pick up a designer dog if you really want one. Throw in $30/month for food, and about $50/month for medical expenses, and you have a cheap exercise buddy and companion.

This then led to a continued "flawed logic" comment and a short analysis of supply and demand as related to new dog breeds (are we over-doing this a bit, people?):

Setting aside for the moment the cost-benefit analysis of owning a pet, I don't see how the content of the post even supports the thesis. How does the existence of a new variety of overpriced designer dogs make owning a pet in general more expensive? It seems like the introduction of more suppliers, even expensive suppliers, should shift the supply curve, and therefore the average market price one would expect, downward.

I also got the philosophical argument which, by the way, I was starting to go for:

As important as it is to control expenses, I'd argue that it is a mistake to ignore that true wealth in life comes not only from saving and accumulating, but also from the act of giving. Our dog cost only $10 from the pound, but her unconditional, unlimited love combined with the knowledge that we've given an unwanted animal a good home has a value beyond simple quantification.

I was starting to go for it, that is, until the philosophical argument took a dramatic turn:

I don't know how realistic the animal cops are on the Animal Planet Channel but I am concerned about owning a pet. I have never treated an animal as badly as the people on the show but still, people are being arrested. These animal cops are also telling people it is against the law to butcher rabbits, own your own animal rescue shelter, fight dogs or roasters. I have wondered where they draw the line. Sure I am against intentinally harming another animal but when will the day come when I will be arrested for stepping on ants or killing bacteria. Aren't these animal life also?

Finally, here's my latest, and most favorite, comment of them all:

I agree that $400 is high, until I factor in what I spend over the lifetime of one of my cats. I look at it this way - much cheaper than therapy. They make me smile, keep me grounded (it's hard, for example, to get too carried away with your importance when you scoop litter on a daily basis.)

Costs of Owning a Pet, Part 165

Some people collect coins, some collect stamps, and some collect Precious Moments figurines. I happen to collect posts about the costs of pets.

I don't know why it happens to me -- I really do love animals -- but I just keep on finding posts, articles, comments, etc. about the (usually high) costs of pets. Then when I post on them it seems like I'm an animal hater. I'm not. I'm just pointing out an issue that I think people don't give much thought to.

Anyway, I found this post from My Money Blog about the cost of his new dog and just had to add it to my collection. The bottom line: he's had the dog for three months and just broke the $1,000 barrier.

Costs of Pets Posts

I was reading several blogs a couple days ago and marveled at the number of postings on the costs of pets. So, I started to "collect" these posts and wanted to share a few with you.

Canadian Financial Stuff has a post called $301 for a $90 Cat? where he details the costs of rehydrating his cat. Whatever happened to the water bowl? ;-)

Next there's Defying Debt...in Two Years who posts about Caring for Our Furry Loved Ones. You might think because the author's name has "kitten" in it that she just spends whatever is needed on her pets, but she's really thinking about the cost. Her comments include:

But let's face it: pets can be expensive. If anything does happen to the precious furry ones you could be paying thousands of dollars out of pocket for surgical procedures, treatments and medication. Pet medical insurance is available but costly. I haven't done a lot of shopping around but at one site they would charge about $35 a month for full coverage which works out to be $420 per year. If you have 2 cats like me, that would be $840 a year!

NYC Money notes that maybe pets aren't that expensive when compared to other options. Her comments:

So I have realized people in Manhattan are completely crazy about their pets. Yes, sometimes I am too. She's furry, and there isn't anything furry in Manhattan. Maybe it is a substitute for children. Kids are too expensive here, dogs and cats are a good compromise. Yup, I've been living in NYC too long.

Finally, here's a great post on whether pet insurance is worth the money. It's very informative.

What's your favorite pet-related money story?

10 Things Your Veterinarian Won't Tell You

Following in my tradition of "here's how expensive your pets are" (see here, here, and here) (need links) comes an article from Smart Money called 10 things your veterinarian won't tell you. Several of them have to do with the expenses of having a pet including:

1. "Good thing you love Schatzi like a son. His care could cost as much."

After a New York City taxi struck Jessica Malionek's dog, Mojo, flinging him 30 feet in the air, she spent $4,000 for veterinarians to perform emergency treatment and then life-saving surgeries on her beloved dog. "It was like they were treating a person," Malionek says.

These days veterinary medicine can be every bit as sophisticated as human health care — and the costs reflect it. Animal lovers spent $19 billion on veterinary care in 2001, the most recent figure available, up from $7.2 billion a decade earlier, according to the American Veterinary Medical Association. And per-visit costs are skyrocketing: Between 1991 and 2001, the average cost of a veterinary visit for a dog nearly doubled, from $50 to $99. For cats, costs rose even more precipitously, jumping by 107%.

Why the steep price hikes? Chris Green, an attorney and member of the American Veterinary Medical Law Association, says vets are happily obliging owners who want to keep their pets alive at all costs. That means paying up for the latest high-tech procedures, such as feline kidney transplants and CAT scans. There are also more aged pets today, which require more care.

7. "Go ahead and sue — it'll hurt you more than it hurts me."

When Marc Bluestone's dog Shane died after being treated for seizures at All-Care Animal Referral Center in Fountain Valley, Calif., Bluestone decided to sue. In a precedent-setting ruling, a jury awarded him $39,000 for malpractice, claiming he and his dog had a "special and close relationship." (All-Care is appealing the ruling.)

But that's an exception — suing a veterinarian is at best a dodgy financial undertaking. The reason is that under the law pets are considered property, says Ireland Moore, the animal lawyer in Portland, Ore. More often than not, that means court awards are for the straight market value of the pet, which could be as little as $10 for your beloved mutt. Meanwhile, suing a vet is likely to be an expensive undertaking.

If your pet becomes the victim of a medical mishap, know that your legal recourse is anything but guaranteed. "It's not always the most economically smart thing to do," Moore concedes.

9. "I haven't the foggiest idea why your dog's acting crazy."

The study of animal behavior is a relatively new specialty in veterinary medicine. In fact, the AVMA lists only 36 board-certified animal behavior specialists on its web site, compared with 1,500 internal medicine specialists. Yet many pet owners get rid of their cats and dogs, or even put them to sleep, for annoying behavior ranging from barking to eating drywall. Daniel Aja, a veterinarian in Traverse City, Mich., and president of the American Animal Hospital Association, recalls one client who brought in a St. Bernard to be euthanized because of severe separation anxiety. Once when the owner left the house, the dog jumped through a plate-glass window to chase after him. Aja convinced the owner to treat the pup with antidepressants and had behaviorists on his staff counsel the client on how to work with his dog.

Not all vets will make the extra effort to diagnose a behavioral problem, which entails taking a complete medical and behavioral history and spending hours with a pet. What do you do if Champ continues to chase his tail? Ask your vet if he has experience with behavioral issues. If not, request a referral. The International Association of Animal Behavior Consultants' web site lists professionals with varying experience in behavior training, from vets to dog trainers.

Do people really hire animal psychologists? Yikes! Oh well, I guess it's ok, I'm sure they're very inexpensive and highly accurate (please read the last sentence with a sarcastic tone.)

Yes, there's the love of a pet that's to be gained, and that's worth something certainly. All I'm saying -- in any of these pet-related posts -- is to consider the cost. Most people don't really calculate the total costs when they buy a pet.

The Cost of a Pet is Now More than $48,000

One of the most controversial posts ever here at Free Money Finance was when I wrote that the cost of a pet is $48,000. You would have thought that I said something blasphemous from the reaction.

But never one to shy away from controversy (actually, I kind of like it), I thought I'd post again on the latest trend that makes owning a pet EVEN MORE expensive.

Here are the details. First, from Business Week:

• "The latest craze among dog fanciers: Poodles crossed with other breeds. Make room for doodles, the latest designer dogs -- a mix of a poodle with another breed. The most popular hybrids are goldendoodles (golden retriever mix), Labradoodles (Labrador retriever), schnoodles (schnauzer), and cockapoos (cocker spaniel)."
• "Aside from their shaggy good looks and friendliness, doodles are in demand because they usually don't shed. But 'there's no such thing as a hypoallergenic dog,' says Susan Chaney, editor of Dog Fancy. 'A lot of these dogs simply have less dander.' "
• "Compared with other breeds, doodles are a relatively new phenomenon. While cockapoos and schnoodles have been around for several decades, Labradoodles were first bred in Australia as guide dogs for blind people with allergies in the 1990s. Goldendoodle varieties quickly followed."
• "Doodle pups fetch pedigree prices -- anywhere from $400 to $3,000."

And not to be outdone, Money had a 4-page spread on the topic in its August issue. Key points:

• "A goldendoodle has the potential to be more relaxed, shed less, have great hips and skin and be hypoallergenic -- the perfect dog."
• "Perfect dogs are pricey dogs, however. The new mutts cost every bit as much as their purebred ancestors, and many breeders and stores nevertheless maintain long waiting lists."
• "Labradoodles (Labrador plus poodle), for example, can fetch $2,500. That's a lot of money, but people seem to be willing to pony up for a dog that won't leave its coat everywhere around the house. Plus, there's an element of fashion to the new mixes -- having the first Labradoodle on your block is a little like owning the first Prius."

Money also has some suggestions in case you're thinking of buying one of these:

• Find a good breeder -- The best first step is to go online. The breeders are all there, and once you find a few who sell the kind of dog you want, ask for as many references as they have and call every single one.
• Meet the parents of your potential dog -- Or at least inquire about their heritage. According to the AKC, the basic definition of a purebred dog is one that has at least three generations of purebred parentage. Even if you don't give a yap about AKC regulations, the ancestry issue is worth considering because it's the link to what many people believe is the problem with mixes: inconsistency. Purebred dogs fetch high prices because they tend to have all the traits the breed is known for, and healthy purebreds produce the best mixes.
• Get a guarantee -- For any dog, but especially a mix, ask for a one- or two-year money-back guarantee. This may sound cold -- we're talking about a warm ball of fluff that sleeps on your pillow, after all -- but 15 states now have puppy lemon laws for good reason.

My advice: minimize the number of beings in your household that eat. Assuming you want to keep your kids, this means careful contemplation of what a pet requires and costs before getting one.

Financial Horror Stories from Pet Owners

Wow!  Nothing gets people up in arms more than writing about how expensive their pets are.  I've received several "they're not that expensive" and "they're worth it" emails/comments since I posted about it yesterday.  But it's all ok with me because controversy drives traffic. :-)

While I'm not going to make this into the "Financial Pet Blog", I can't resist posting one more time on the topic.  This time, I want to share some of the comments that related to pets and finances that I found especially horrific. Here are a couple:

"My wife and I bought a pet rabbit in 1988. He died in 1998. We spent over $5,000.00 on vet bills and supplies. A rabbit. I can not imagine a dog."

Turns out, a dog is a couple thousand less than a rabbit:

"Not only are they expensive on a monthly basis but I spent over $3,000 on acupuncture for my Doberman, Bruno, before I had to put him down. Six months later I bought another Doberman, Boomer. :)"

I didn't know dogs got acupuncture, but what do I know?

Finally, here's a post from a friend of mine who would 1) give up eating to have a pet, 2) keeps a tight dog treat budget, and 3) holds his kids to a spending level below the monthly cost of a pet:

"With my dog it comes far less than $400 per month. Heck, I don't spend that much on my two kids!

My golden retriever was from the human society for $100 and that including the "fix". You don’t need to spend big bucks on pure breed champion dogs to get a good one. We bought two dog dishes and got an old quit from the Salvation Army for $5. Her fetch toy costs less than $5 and I got a free doghouse from a friend. The most expense is the once a year vet visit with heartworm pills and shots. That's about $200. Then add in dog food and treats and it's that’s about $25 per month. The amount of pleasure my children get from the dog far exceeds the $500 per year we pay. If you decide do not take the family out for dinner once per month you have covered the cost of the pet with ease. Seeing the kids playing and loving the dog is a greater overall benefit than one meal at a restaurant. Your kids will always remember the dog but they will never remember that missed restaurant meal. This is fiscal responsibility."

I'll refrain from commenting and let you all take it from here. ;-)

Update: Time to link to the Beltway Traffic Jam.

Cost of a Pet is $48,000!!!

Saw a great post today at Let's Make Cents.  It was about buying a pet, but the part I picked up on was the cost of owning a pet.  I clicked through to Baby Center where they commented:

"As far as cost, you can expect to spend up to $400 a month on your pet for food, training, and other expenses — especially in the first six months, when you'll be buying supplies and going to the vet more often. Buying a dog or cat can set you back anywhere from $100 to $200 for a shelter animal to $2,000 or more for a purebred (plus extra costs for spaying or neutering, vaccinations, and microchip identification)."

Let's put a few numbers to this.  If a pet costs $400 per month and lives for 10 years, that's $48,000 (not to mention what you could have earned on that money if you had invested it).  If the pet lives for 15 years, that's $72,000!!!  Even if the pet only costs $200 per month, that adds up to $36,000 over 15 years.  Yikes!!!

Now before I get all the "you are a pet hater" people commenting, let me say that I love animals.  I am not saying that people shouldn't own pets.  What I am saying is that you just need to be aware of the cost -- and that the cost is probably more than you think.

One time I heard a financial advisor say that the key to prosperity was to "minimize the number of beings in your household that eat food."  After doing the math on pets, it seems like he was on to something.

Update: Time to post to the Beltway Traffic Jam.